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| Yes Bank |
Yes Bank Faces Investor Exodus: Becomes Only Top-10 Private Lender With Zero 'Buy' Ratings Amid Growing Concerns
In a stunning development that signals deepening investor skepticism, Yes Bank has achieved the unfortunate distinction of being the only lender among India's top 10 private banks without a single 'buy' recommendation from analysts, creating a stark contrast with its peers and raising serious questions about the bank's ongoing turnaround story. According to the latest Bloomberg brokerage data compiled as of November 10, 2025, the beleaguered bank currently faces nine 'sell' calls from analysts, highlighting the overwhelming negative sentiment surrounding a financial institution that once stood as a shining example of India's banking potential but now struggles to convince even the most optimistic market experts of its recovery prospects. The last time Yes Bank received a buy rating was back on April 30, 2024, marking over eighteen months of continuous analyst pessimism that reflects persistent concerns about operating performance, asset quality deterioration, and the bank's ability to navigate the challenging economic landscape that has seen other private lenders maintain much stronger market confidence.
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The analysis from Anand Rathi Financial Services pinpoints several critical areas of concern that have led to this unprecedented lack of analyst support, including weak operating performance driven by subdued net interest margins (NIM) that are expected to stay below 3%—significantly lower than industry standards—and alarmingly high operating costs that keep the cost-to-income ratio elevated. These fundamental weaknesses are likely to keep Yes Bank's return on equity (RoE) under 10% in the medium term, creating a vicious cycle where poor performance discourages investment, which in turn limits the capital needed to fuel recovery. Compounding these operational challenges is the continued stress in the retail loan book, which has shown troubling signs of deterioration even as the bank reported sequential growth in loans and deposits—growth that has frustratingly failed to translate into meaningful earnings improvement, leaving investors increasingly impatient and skeptical about the management's ability to execute a sustainable turnaround strategy.
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The contrast with other private banks couldn't be more dramatic, with HDFC Bank and ICICI Bank leading the pack with 46 and 48 'buy' ratings respectively and, remarkably, zero 'sell' calls, demonstrating the market's continued faith in their robust business models and consistent performance. Axis Bank follows closely with 42 'buy' recommendations, while Federal Bank enjoys 35 'buy' ratings with just one 'sell' call, highlighting the selective but substantial confidence that analysts maintain in well-managed private lenders. The only other bank facing significant skepticism is IndusInd Bank with 22 'sell' recommendations, though it still maintains 7 'buy' ratings—a position that, while concerning, appears substantially better than Yes Bank's complete absence of supportive analysts. This dramatic divergence in market perception underscores the challenging road ahead for Yes Bank as it struggles to regain the trust of both investors and analysts in an increasingly competitive banking landscape where performance gaps are being ruthlessly punished by the market.
Source: Bloomberg Brokerage Data, Anand Rathi Analysis Report
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Disclaimer: This analysis is based on brokerage reports and market data. Investors should consult financial advisors before making investment decisions. Stock market investments carry risks.